On 18 November, after months of tense negotiations, the world’s largest car manufacturer and its general works council signed a ‘pact for the future’ which will kick-start the most comprehensive restructuring operation in Volkswagen’s history. Having been hit hard by the so-called ‘dieselgate’ scandal, the German car maker has announced that 30,000 jobs will be cut, 23,000 of which are in Germany, by 2020. Over the same period, VW hopes to save €3.7 billion per year. The automobile giant is also looking towards the future and is looking to create 9,000 jobs in growth sectors, namely e-mobility and digitalisation. VW’s powerful general works council supports the pact, as it will not involve compulsory redundancies in the near future. Furthermore, as demanded by staff representatives, the production of electric cars will take place in Germany and not elsewhere.
No compulsory redundancies until 2025. VW’s general works council has consistently underlined that employees are not prepared to pay the price for the diesel engine scandal, so the pact is a difficult one to accept. The manufacturer plans to cut 23,000 jobs by 2020 and make savings of €3.7 billion per year. This said, president of the general WC Bernd Osterloh was quick to allay the fears of staff members; he said: “The most important news is that the positions of our permanent workforce will b
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